ESG / ESD and Uplift Allowances
If an employee recieves an "overseas assignment uplift of X%" that is paid on top of his salary, is shown as an allowance on his pay stub and is considered taxable by the home country (in my case, Canada), does that extra X% (in my case 10%) fall under the definition of "Basic Wages" and therefore to be calculated as part of the "End of Service Gratuity/Bonus" eaqual to three weeks pay per year served, or is it considered to be an allowance (part of general "Wages") and therefore exempt from ESG calculation? I am demobiliozing in less than four days so I would appreciate an answer quickly.
Baldrick2dogs - I figured as much, but I am a wishful thinker. I guess my real question is this..."Just because the employer CALLS it an allowance, does that make it an allowance?"
I am wondering if this 10% is nothing more than a pay increase in the eyes of the Labour Department as it is taxed just like the Basic Wage, shows up on the Pay Stub just like the Basic Wage ans is hourly just like the Basic Wage. This seems to be grey area to me.
"... is shown as an allowance ..., does that extra X% ... fall under the definition of "Basic Wages"
I think you've answered your own question.
Basic is basic. Allowances are extra.